SEOUL– South Korea’s finance ministry said Thursday that the country’s currency liquidity conditions remain “sound” despite on-going volatility in the exchange market.
The remark came amid looming concerns over a foreign reserve crisis as the Korean won has dipped against the U.S. dollar, plunging around 16 percent this year.
“Despite the volatility in the global financial market sparked by the outlook over further U.S. Federal Reserve rate hikes, the local banks’ foreign currency liquidity conditions largely remain sound,” the Ministry of Economy and Finance said in a release.
The situations in non-banking sectors, including brokerage houses and insurers, also remain stable, it added.
“It is important that related bodies work closely to take preemptive actions against risks in the foreign exchange sector amid the growing market uncertainties,” First Vice Finance Minister Bang Ki-seon said during a meeting with officials from the Bank of Korea and the Financial Services Commission.
Source: Yonhap News Agency